Federal antitrust laws in the United States are intended to
A) promote competition by prohibiting monopolies.
B) increase corporate earnings.
C) create new monopolies.
D) create only government-owned monopolies.
Ques. 2To evaluate relative changes in the net public debt, we must
A) look at the absolute amount owed by the government.
B) compare it to the nation's real GDP.
C) look at the annual percentage change in the public debt.
D) compare it to the debts of all developed countries.
Ques. 3Which of the following will cause the demand curve for beer to shift right?
A) a fall in the price of beer
B) a fall in average incomes of beer consumers
C) a decline in population
D) a successful advertising campaign linking beer consumption to lower cholesterol
Ques. 4There is a direct relationship between economic growth rates and the wealth of a nation. Do you agree or disagree? Why?
What will be an ideal response?
Ques. 5What will happen to the annual rate of growth of per capita real GDP if the annual rate of population growth increases and the annual rate of growth of real GDP goes down?
A) It will increase since an increase in population means an increase in labor that translates into an increase in real GDP.
B) It will increase since the annual rate of growth of real GDP does not influence the growth rate of per capita real GDP.
C) It will decrease since an increase in the growth rate of population and a decrease in the growth rate of real GDP both work to decrease the growth of per capita real GDP.
D) The effect will depend upon whether the rate of population growth is greater than or less than the rate of growth of real GDP.
Ques. 6Which of the following combinations would constitute a vertical merger?
A) General Motors and Bridgestone Tire Company
B) General Motors and Ford Motor Company
C) Philip Morris and RJ Reynolds
D) Philip Morris and Barnes & Nobles Booksellers
Ques. 7The term ceteris paribus is an economic assumption that means
A) let the buyer beware.
B) common sense is reality.
C) the detail is in the interrelationship.
D) other things being equal.
Ques. 8If your income and the price level both rise by 5 percent, and you think you now have more real income, you are suffering from
A) diminishing marginal expectations.
B) leakages.
C) injections.
D) money illusion.
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